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Bravo Brio makes for a great pick in terms of growth investment. Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) ahead for the company in question.

While Bravo Brio has put up a historical EPS growth rate of a whopping 87.8%, compared with the industry average of 10.2%, investors should really focus on the projected growth. Here, the company is looking to grow at a rate of 51%, while the Zacks categorized Retail-Restaurants industry’s average calls for EPS growth of just 7.2% in comparison.

In addition, the company currently has a Growth Score of ‘B’ on our style score system that helps us to identify potential outperformers.

Valuation Looks Reasonable

Bravo Brio has a Value Style Score of ‘B.’ The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.

Looking at the sales, the company is currently trading at a P/S ratio of 0.18, much lower than the industry average which stands at 1.24. Some people like this metric more than other value-focused ones because sales are harder to manipulate with accounting tricks than earnings.

Also, the PEG ratio is an important indicator as this metric looks to show investors how much they are paying for each unit of earnings growth. That said, Bravo Brio impresses here too as its PEG is1.34, while the industry’s average is 1.61.

An often overlooked ratio that can still be a great indicator of value is the price/cash flow metric. This ratio doesn’t take amortization and depreciation into account, so can give a more accurate picture of the financial health in a business. Bravo Brio has a P/CF of 2.04, lower than the industry’s average of 9.67.

All these ratios deem the company undervalued in comparison to its industry peers and thus indicate a good time to buy.

Stock Price Movement

Bravo Brio stock is seeing solid activity on the price front right now, leading the company to carry a Momentum Style Score of ‘B’. Shares of Bravo Brio have returned 25% year to date, comparing favorably with the industry, which fell 1.3% in the same time frame. In fact, we noticed that Bravo Brio has outperformed the industry in each of 1-week, 4-week and 12-week time frames as well.

Notably, the stock is trading extremely cheap at under $5 now. This makes it a lucrative buy as it does not require a high amount of investment to be a part of the company’s profits.

Earnings History and Future Estimates

Bravo Brio has beaten/met earnings estimates in seven of the trailing nine quarters.

Furthermore, upward estimate revisions reflect optimism in the stock’s prospects. Full-year 2017 estimates have moved north by 44.4%, over the last two months, reflecting three upward revisions versus none downward. Similarly, 2018 earnings estimates have jumped 188.9% over the past two months, as a result of two upward revisions against none downward.

Nevertheless, Bravo Brio is expected to perform well in the quarters ahead based on these fundamentals and we remain hopeful on the stock’s prospects, going ahead.

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2017. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

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